Question
A company reports $10,200,000 in goodwill. At the end of 2017, the following information is collected: Division 1 Division 2 Division 3 Book value of
A company reports $10,200,000 in goodwill. At the end of 2017, the following information is collected:
|
| Division 1 | Division 2 | Division 3 |
| Book value of goodwill | $ 6,000,000 | $ 200,000 | $ 4,000,000 |
| Fair value of division | 40,000,000 | 6,000,000 | 20,000,000 |
| Book value of division | 50,000,000 | 6,500,000 | 21,000,000 |
| Fair value of identifiable net assets of division | 33,000,000 | 5,900,000 | 17,000,000 |
Assume the company assesses that it is more likely than not that goodwill is impaired for all reporting units.
What is the amount of goodwill impairment loss for 2017, following U.S. GAAP?
a. $ 100,000
b. $2,100,000
c. $1,000,000
d. $1,100,000
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Clinical Audit For Doctors
Authors: Dr. Bob Ghosh, Sir Liam Donalson, Dr. Chen Sheng Low, Margaret Keane, Dr. Bhoresh Dhamija
1st Edition
1906839018, 978-1906839017
